We often hear the phrases “I make too much money to file bankruptcy,” or “I have too much property to file for bankrutpcy.” These myths are often untrue. Recently, the San Diego Bankruptcy Court allowed debtors with income of $14,500 per month and over $8000.00 in housing expenses related to their “McMansion” to receive a chapter 7 discharge.
Generally speaking, if you make too much money, you still may be able to qualify for Chapter 7 relief, and almost always can qualify for Chapter 13 relief. Likewise, if you have a house with $200k in equity, it is still possible to qualify for chapter 7. Each case is different and different laws apply to different circumstances. For instance, if your debt is primarily non-consumer debt (more than 50% of your outstanding debt is for taxes, business debt, certain student loans, real estate loans on rental properties, tort debts such as motor vehicle debts, most medical bills, business car loans, etc) then it does not matter how much money you make! You still qualify to file for chapter 7 relief! You could make over $1,000,000.00 per year and still qualify!
Written by Michael G. Doan- Owner of the Carlsbad Bankruptcy Attorney‘s office, Michael not only manages his business, but is also a highly skilled Bankruptcy Attorney with over 17 years of experience. He specializes in many fields, such as: insolvency, bankruptcy, consumer rights, debt negotiation, creditor collection abuse, estate planning, contracts, real estate, and tax. Michael is currently concentrating his practice solely in Bankruptcy Law and is a Board Certified Specialist in Consumer Bankruptcy Law by the American Board of Certification, one of only thirteen such attorneys in all of California.